Sonata Software Ltd - Stock Valuation and Financial Performance

BSE: 532221 | NSE: SONATSOFTW | IT - Software | Small Cap

Sonata Software Share Price

707.15 82.60 13.23%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Sonata Software

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Sonata Software stock performance -

mw4me loader
P/E Ratio (SA):
55.27
Market Cap:
19,830.2 Cr.
52-wk low:
469.1
52-wk high:
867.1

Is Sonata Software Ltd an attractive stock to invest in?

1. Is Sonata Software Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sonata Software Ltd is a good quality company.

2. Is Sonata Software Ltd undervalued or overvalued?

The key valuation ratios of Sonata Software Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Sonata Software Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Sonata Software Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Sonata Software:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sonata Software Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 19.1%32.3%27.6%27%27.9%34.1%46.8%40.8%41.8%40.4%-
Value Creation
Index
0.41.31.00.91.01.42.32.02.12.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 334467505593689829877781758921950
Sales YoY Gr.-39.9%8.1%17.4%16.2%20.5%5.7%-10.9%-3%21.5%-
Adj EPS 2.23.93.94.44.86.37.46.48.1812.8
YoY Gr.-77.8%0%12.2%9.3%30.9%16.8%-13.2%26.3%-0.7%-
BVPS (₹) 11.412.712.916.917.719.213.41920.519.625.2
Adj Net
Profit
62110110122134175204177224222359
Cash Flow from Ops. 58.383.482.497.314937.1281188152-54.6-
Debt/CF from Ops. 0.10.11.2000000-0-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.9%6%1.7%21.5%
Adj EPS 15.4%10.7%2.9%-0.7%
BVPS6.2%2.1%13.6%-4.5%
Share Price 38.7% 39.9% 35% 34.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
19.732.530.729.527.834.145.139.340.739.557.1
Op. Profit
Mgn %
20.526.325.22523.227.825.529.918.414.17.6
Net Profit
Mgn %
18.623.621.820.619.421.123.322.729.524.237.7
Debt to
Equity
000.300000000
Working Cap
Days
225191221178134142147240267194117
Cash Conv.
Cycle
3022425253656939254277

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 57.10%

Sales growth has been subdued in last 3 years 1.65%

Net Profit has been subdued in last 3 years 2.86%

Sales growth is not so good in last 4 quarters at 3.27%

Latest Financials - Sonata Software Ltd.

Standalone Consolidated
TTM EPS (₹) 12.8 11
TTM Sales (₹ Cr.) 950 8,613
BVPS (₹.) 25.2 50.2
Reserves (₹ Cr.) 679 1,379
P/BV 28.05 14.10
PE 55.27 64.28
From the Market
52 Week Low / High (₹) 469.05 / 867.10
All Time Low / High (₹) 2.38 / 867.10
Market Cap (₹ Cr.) 19,830
Equity (₹ Cr.) 28
Face Value (₹) 1
Industry PE 35.1

Management X-Ray of Sonata Software:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sonata Software

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales334467505593689829877781758921
Operating Expenses 277344378445529603675548619791
Manufacturing Costs25232327385447265378
Material Costs001274547646195102
Employee Cost 187258286307364405467413415544
Other Costs 64636784829798485667
Operating Profit 57123127148160226201234139130
Operating Profit Margin (%) 17.0%26.3%25.1%25.0%23.2%27.3%23.0%29.9%18.4%14.1%
Other Income 2037403443199945167160
Interest 014400111097
Depreciation 75445621191819
Exceptional Items 0006000000
Profit Before Tax 69154159179198239269250280264
Tax 15364146476757714544
Profit After Tax 54117117133151172211179235220
PAT Margin (%) 16.1%25.2%23.3%22.5%22.0%20.8%24.1%22.9%31.0%23.9%
Adjusted EPS (₹)1.94.24.24.85.56.27.66.58.57.9
Dividend Payout Ratio (%)73%63%81%70%72%77%100%81%93%99%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 319357360467490531370527569544
Share Capital 11111110101010101014
Reserves 309347350457479521360517559530
Minority Interest0000000000
Debt65970000001
Long Term Debt0000000000
Short Term Debt65970000001
Trade Payables3236323958527893101109
Others Liabilities 107169137395163184551244261
Total Liabilities 4645686265455996466321,171914915

Fixed Assets

Gross Block8991992329341211179998
Accumulated Depreciation747981491418332941
Net Fixed Assets151218192020103847056
CWIP 0000000000
Investments 10910796136199149569814384
Inventories0000000000
Trade Receivables64102125160185289230192162308
Cash Equivalents 13716218613712686156281301193
Others Assets139184201936810287517238274
Total Assets 4645686265455996466321,171914915

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5883829714937281188152-55
PBT 69154159179198239269250280264
Adjustment -9-18-22-17-9-27-41-22-116-122
Changes in Working Capital 13-26-17-31-9-1021234138-132
Tax Paid -15-27-37-33-32-73-70-82-50-65
Cash Flow From Investing Activity 39-103-31505661146-77077
Capex -2-5-10-5-5-6-8-1-4-18
Net Investments -3715-24-538097-38-36-57
Others 77-100-2678113-135632109152
Cash Flow From Financing Activity -38-68-79-143-114-143-360-57-204-251
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 0-1-4-3000000
Dividend Paid -23-57-140-36-95-118-293-41-187-232
Others -15-1065-104-19-25-67-16-17-18
Net Cash Flow 59-88-27590-456712318-228
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)17.1234.7232.7332.2131.6233.7946.8839.8942.9139.59
ROCE (%)21.1845.0739.6739.641.3646.7461.757.652.4948.16
Asset Turnover Ratio0.760.90.851.011.21.331.370.870.731.01
PAT to CFO Conversion(x)1.070.710.70.730.990.221.331.050.65-0.25
Working Capital Days
Receivable Days6765828891104108988593
Inventory Days0000000000
Payable Days008,789488391429372514373373

Sonata Software Ltd Stock News

Sonata Software Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sonata Software on 12-Jul-2024 16:01 is ₹707.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Jul-2024 16:01 the market cap of Sonata Software stood at ₹19,830.2.
The latest P/E ratio of Sonata Software as of 12-Jul-2024 16:01 is 55.27.
The latest P/B ratio of Sonata Software as of 12-Jul-2024 16:01 is 28.05.
The 52-week high of Sonata Software is ₹867.1 and the 52-week low is ₹469.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sonata Software is ₹950.3 ( Cr.) .

About Sonata Software Ltd

Sonata is a global technology company that enables successful platform-based digital transformation initiatives for enterprises, to create businesses that are connected, open, intelligent and scalable. Sonata’s Platformation methodology brings together industry expertise, platform technology excellence, design thinking-led innovation and strategic engagement models to deliver sustained long-term value to customers. A trusted partner of world leaders in the Retail, Manufacturing , Distribution, Travel, Services and Software industries, Sonata’s solution portfolio includes its own digital platforms such as Brick & Click Retail Platform, Modern Distribution Platform, Rezopia Digital Travel Platform, Kartopia E-commerce Platform, Halosys Enterprise Development Automation Platform, CTRM (Commodity Trading and Risk Management) Platform, KODO - (an AI-powered Customer Experience (CX) Platform).

Sonata’s Platformation realization services have been specifically designed so that implementation of services on Microsoft Dynamics 365, Microsoft Azure, AWS, Cloud Engineering, Managed Services as well as on new digital technologies like IoT, Artificial Intelligence, Machine Learning, Robotic Process Automation, Chatbots, Blockchain and Cybersecurity, deliver on the Platformation promise. Sonata’s people and systems are nurtured to bring together the depth of thought leadership, customer commitment and execution excellence to make a difference to business with technology

Business area of the company

The Company is engaged in business providing IT Services and Solutions to its customers in the US, Europe, Middle East, Asia Pacific and Distribution of Software Products in India.

Platformation Services

  • Platformation
  • Platform Engineering
  • Data & Analytics
  • Microsoft Dynamics
  • Advanced Technologies
  • Digital Assurance & Managed Services
  • Cloud Transformation
  • Customer Engagement and Commerce 

Awards

  • 2009: Winner in the Deloitte Technology Fast 500 Asia Pacific 2009 Program
  • 2011: Listed among Global Services Top 100 Companies for FY 2010-2011
  • 2011: Featured in Global Services’ list of Emerging Infrastructure Management Vendors and Top Speciality Product Engineering Vendors for FY 2010-2011
  • 2011: Ranked among Top 50 companies by Dataquest for FY 2010-2011
  • 2012: Ranked 6th in the Software Products segment by Zinnov Management Consulting Pvt. Ltd.
  • 2012: Sonata’s travel extensions & integrations over and above the core Hybris platform bagged Most Innovative Partner Award for the year 2012: Travel domain expertise
  • 2018: Siemens names Sonata Software the ‘Most Value-added Partner of the year 2018'
  • 2018: IBM awards ‘Best Software Partner of the Year – Commercial Segment’ to Sonata Software for the year 2018.
  • 2018: Featured in the leadership zone of service providers in two key categories - Independent Software Vendors (ISVs) and Consumer Software Service Providers by Zinnov Management Consulting Pvt. Ltd. Sonata has also been ranked as an established, niche R&D service provider on the overall front
  • 2018: Sonata Software has been assessed at CMMI Level 5 (Version 1.2-Development Model) for its development centers in Bangalore and Hyderabad
  • 2019: MS certified Platform solutions - Brick & Click and Modern Distribution 2018-19
  • 2020: UiPath has certified Sonata Software as Gold Tier Partner 2020
  • 2020: Sonata Information Technology Limited is now IBM Software - Platinum Business Partner 2020
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